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ZIM Q2 Earnings & Revenues Miss Estimates, Down Year Over Year
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Key Takeaways
ZIM posted Q2 EPS of 19 cents, missing estimates and declining 93.8% year over year.
Q2 revenues declined 15.3% to $1.63 billion, owing to the decrease in freight rates and carried volume.
ZIM raised its 2025 adjusted EBITDA forecast to $1.8-$2.2 billion, from its prior view of $1.6-$2.2 billion.
ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) ) reported disappointing second-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings of 19 cents per share lagged the Zacks Consensus Estimate of $1.50 and declined 93.8% on a year-over-year basis.
Revenues of $1.63 billion lagged the Zacks Consensus Estimate of $1.76 billion and declined 15.3% from the year-ago quarter. The downside was due to the decrease in freight rates and carried volume.
Carried volume in the second quarter decreased 6% year over year to 895 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the second quarter decreased 12% year over year to $1,479.
Eli Glickman, ZIM's president and chief executive officer, stated, “Amid market disruptions and volatility, we continued to leverage our upscaled capacity and improved cost structure in Q2. In this highly uncertain market environment, our focus is controlling what we can to position ZIM for sustainable and profitable growth over the long term."
Adjusted EBITDA for the second quarter was $472 million, down 38% on a year-over-year basis. Adjusted EBITDA margins for the second quarter of 2025 fell to 29% from 40% in the year-ago quarter.
Adjusted EBIT was $149 million in the second quarter of 2025 compared with $488 million in the year-ago quarter. Adjusted EBIT margins in the second quarter of 2025 fell to 9% from 25% in the year-ago quarter.
Despite the disappointing aforesaid quarterly numbers, ZIM increased the midpoints of its 2025 guidance ranges. For 2025, ZIM now expects to generate adjusted EBITDA between $1.8 billion and $2.2 billion (prior view: $1.6 billion and $2.2 billion) and adjusted EBIT between $550 million and $950 million (prior view: $350 million and $950 million).
ZIM exited the second quarter with cash and cash equivalents of $1.18 billion compared with $1.54 billion at the end of the previous quarter.
ZIM generated $441 million of cash from operating activities in the second quarter of 2025. Capital expenditures totaled $24 million for the reported quarter. Free cash flow was $426 million.
ZIM’s Second-Quarter 2025 Dividend
ZIM’s board of directors declared a regular cash dividend of approximately $7 million, or 6 cents per ordinary share, reflecting almost 30% of second-quarter 2025 net income. The dividend will be paid on Sept. 9, 2025, to shareholders of record as of Sept. 2, 2025.
Q2 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.
Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
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ZIM Q2 Earnings & Revenues Miss Estimates, Down Year Over Year
Key Takeaways
ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) ) reported disappointing second-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings of 19 cents per share lagged the Zacks Consensus Estimate of $1.50 and declined 93.8% on a year-over-year basis.
Revenues of $1.63 billion lagged the Zacks Consensus Estimate of $1.76 billion and declined 15.3% from the year-ago quarter. The downside was due to the decrease in freight rates and carried volume.
Carried volume in the second quarter decreased 6% year over year to 895 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the second quarter decreased 12% year over year to $1,479.
Eli Glickman, ZIM's president and chief executive officer, stated, “Amid market disruptions and volatility, we continued to leverage our upscaled capacity and improved cost structure in Q2. In this highly uncertain market environment, our focus is controlling what we can to position ZIM for sustainable and profitable growth over the long term."
Adjusted EBITDA for the second quarter was $472 million, down 38% on a year-over-year basis. Adjusted EBITDA margins for the second quarter of 2025 fell to 29% from 40% in the year-ago quarter.
Adjusted EBIT was $149 million in the second quarter of 2025 compared with $488 million in the year-ago quarter. Adjusted EBIT margins in the second quarter of 2025 fell to 9% from 25% in the year-ago quarter.
Despite the disappointing aforesaid quarterly numbers, ZIM increased the midpoints of its 2025 guidance ranges. For 2025, ZIM now expects to generate adjusted EBITDA between $1.8 billion and $2.2 billion (prior view: $1.6 billion and $2.2 billion) and adjusted EBIT between $550 million and $950 million (prior view: $350 million and $950 million).
Currently, ZIM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ZIM Integrated Shipping Services Ltd. Price, Consensus and EPS Surprise
ZIM Integrated Shipping Services Ltd. price-consensus-eps-surprise-chart | ZIM Integrated Shipping Services Ltd. Quote
Liquidity
ZIM exited the second quarter with cash and cash equivalents of $1.18 billion compared with $1.54 billion at the end of the previous quarter.
ZIM generated $441 million of cash from operating activities in the second quarter of 2025. Capital expenditures totaled $24 million for the reported quarter. Free cash flow was $426 million.
ZIM’s Second-Quarter 2025 Dividend
ZIM’s board of directors declared a regular cash dividend of approximately $7 million, or 6 cents per ordinary share, reflecting almost 30% of second-quarter 2025 net income. The dividend will be paid on Sept. 9, 2025, to shareholders of record as of Sept. 2, 2025.
Q2 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.
Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.